TAX CUTS VS. IPOs
Between 1970 and 1996 there were generally more IPOs when capital-gains tax rates were low. This year, the pace of new issues was slow compared to the previous year--until August, just after Congress passed a tax bill that cut the rate from 28% to 20%. Of course, that doesn't prove cause and effect: Economists still debate whether it's tax cuts or other factors that influence IPOs.
EDITED BY EDITH HILL UPDIKE
Updated Oct. 2, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.